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No To Oligarchy > Letters

Gulliver's travails

Oligarchs are constructing an empire, and it is starting to look like a keiretsu. This behemoth structure encompasses governments of nation-states and exercises control over them through the banking and financial industry. The techniques used may have been borrowed from China, which has been controlling over 1.3 billion people by using its central bank and currency system. Additionally, Japan Inc., a small country, successfully used the keiretsu model to become an global powerhouse in world trade while operating like a single company domestically.

"He who controls the currency controls the country." —Keynes

In the early 1970s the international monetary system was privatized and put under the majority control of the "too big to fail” banks. These are the same mega institutions that have earned the majority of the blame for originating calls for banking deregulation, inventing derivatives and instituting changes to mortgage lending, all of which have caused the current collapse of the real estate industry and the world economic meltdown.

These private global banks are effectively controlling nation states by controlling their currencies. A good example is the recent financial collapse in Greece, where Goldman, one of the key banks that control the international monetary system, secretly enabled Greece to borrow money well beyond the European Union's collective guidelines for debt. Greece could no longer solve its own financial collapse by printing its own currency because it had joined the EU and accepted the euro as currency instead. As a result, the problem was solved by refinancing the debt using euros and pledging to drastically cut social programs as part of the fix.

The irony about the Greece example is that the trouble-instigating bank that enabled Greece to over-extend was able to watch the "free market" ideology that they push stuffed down the throats of the EU countries while they made money from both ends of the crisis.

The shadowy derivative transactions associated with currency exchange in the international monetary system required the Fed to be involved, and through a few stealth moves the US taxpayer ended up guaranteeing risky derivative investments that were outside the jurisdiction and laws of the United States.

Some of these investments in their simplest form are nothing more than naked short sales, which were banned years ago in our stock markets because they could be used to manipulate the markets. Murphy’s Law says that we should not be using them for currency exchange either.

The five US mega banks are promoting the economic ideology of Milton Freedman, which favors the super-rich and encourages monopoly, and is on a head-on collision course with the economics of Maynard Keynes and the people's democratically elected government of the United States.

The oligarchs and the banksters are trying to make an end-run around the government "of the people” by using "globalism." This order of things is twisted, as our democracy should always be sovereign to unelected G-20 consultants who operate in secrecy.

The concept of kieretsu has been gradually putting the US democracy at risk by tying America down in a manner similar to Gulliver in Lilliput. Hundreds of ties with entities outside the country are gradually restraining US power and usurping its sovereignty. International trade agreements readily surrender US control over valuable assets by selling seaports, airports, highways, subways and parking lots to foreign investors to satisfy debt. International debt grew by $9 trillion during the Bush administration, giving foreign debt holders a say in how we run the government of the people.

Additionally large numbers of "joint economic cooperative agreements” and military agreements are tethering countries, including the USA, together and limiting their independence. Even the allegiance of our military is increasingly becoming attached to others via private contracts.

The recent financial re-regulation falls far short of stopping empire. At the last minute the following was slipped into the financial legislation fix:

<em>the proposal would allow banks to hold onto certain derivatives trading related to interest rates, currency rates, gold and silver. They also would be allowed to continue trading in derivatives in order to hedge against their own risks.</em>

It is clear from the above that the control is meant to be complete. In order to reinstate democracy, we can do nothing short of dismantling the keiretsu control center by reinstituting Glass-Steagall, stopping naked short-selling (derivatives), getting rid of hedge funds (stock pools), breaking up monopolies and untying the chains that limit our independence.

Our current democracy is one in name only and can be compared to a sports event where the referee controls the game but can make bets on the outcome to make money for himself.

William J. Hague

Hoboken, NJ

Jul 28 2010 - 8:49am

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